BIG FIVE HEADLINES
Why does an AI faculty shortage exist? A report by Center for Security and Emerging Technology says the problem is not talent poaching by industry but the pace at which universities adapt to the increasing number of applicants for AI degrees. Companies like Google, Apple and IBM are dropping degree requirements and offering work-based alternatives to the traditional university. Some are voicing concerns about these programs:
“This will [produce] a narrowly trained group of workers whose products will have extraordinary ramifications on the ways we interact and are governed. They build technocratic ‘solutions’ without the perspective of a broad education or possibly a broad and thoughtful outlook on the implications of the work,” said Dan Rockmore, a computer science professor at Dartmouth College.
While college alternatives are on the rise offering flexible, practical and often more affordable learning models, universities still feel like the default option for many. The question is, how much time it will take for institutions to respond adequately to the increased market demand for AI specialists.
Unacademy shut down its US medical test prep business and is cutting down expenses from CXOs salaries to free snacks in offices in order to turn cash flow positive and go public in two years. In message to the whole company, CEO Gaurav Munjal said frugality is to be added to the Unacademy’s core values but assured all employees that the company is in “a great state.” Many expect the company — which started in 2015 as a B2C test prep platform but has expanded vertically since — will rely primarily on its newly acquired B2B enterprises Relevel and Cohesive for profitability. Still, Unacademy is investing big in getting star tutors on their team and staying in the tutoring business despite all post-pandemic complications.
Byju’s announced they are still waiting on $250 million of its $800 million March funding from Oxshott. Headlines raised questions if the missing capital even exists. Recently, Byju’s has been a subject to allegations left and right. So far the start-up actively denies all of them, but times are tough for Indian edtech, companies are under a lot of scrutiny and such attacks are likely to continue unless Byju’s finds a better way to shut down the rumors .
The edtech surge during the pandemic granted more women access to education as online courses offer greater flexibility and safety; however, women are still a minority in the virtual education space. A report by IFC says that boosting women's online education will expand job opportunities, potentially adding up to $14 billion to market value.
“Ten years ago, Coursera was founded to provide universal access to world-class learning. While there's still work to be done, this report captures some of the progress we've made. Online learning can create more opportunity for women and underserved groups by allowing them to continue their studies, learn job-relevant skills, and access new career opportunities-unlocking economic potential for individuals and entire populations,” said Betty Vandenbosch, Chief Content Officer at Coursera.
Ransomware attacks surge in education sector, says a survey by Sophos, and recovery from these hits is longer and more expensive for colleges compared to organizations in other industries.
FUNDING + M&A
African Leadership Group acquires Holberton, a coding school founded in the Silicon Valley, now with physical locations around the world. During the pandemic, Holberton pivoted to become a B2B SaaS provider. ALG, which was initially a Holberton client, is now buying its technology platform. The physical schools are separating as a stand-alone business under Holberton COO Florian Bucher. Looking forward, ALG CEO Fred Swaniker is optimistic:
“We’re not capital constrained, we have the technology and it’s now about execution.”
Preply, a Ukrainian e-platform connecting language learners with tutors, raised $50m in a round led by Owl Ventures. The start-up has grown its user base and revenues more than 10x since 2019. It is also doubling down on a new B2B2C business line, providing services to companies whose employees need or want to improve their skills in a particular language.
Microlearning platform offering text-based training programs Arist raises $12m.
InternMatch, a company that places students and graduates into internships with companies around the world, raises $10m in Series A.
APDS, correctional edtech provider that delivers technology and services for free to incarcerated learners, raises $7m.
Spanish start-up Twenix raises €3.5m. The company offers an e-platform for learning English and aims to break down communication barriers in business. The money will be used to establish the Twenix’ international presence across Europe starting from Italy and to further develop their digital platform.
PIXO VR, an extended reality solutions provider, raises $6.5m.
China Liberal Education Holdings Limited Completes Acquisition of Oriental Wisdom Cultural Development Co, an integrated services provider in the higher education industry in China. It operates school-enterprise jointly-managed programs covering various majors.
Genius Group acquires California-based University of Antelope Valley. Genius Group plans to not only grow the campus and develop the curriculum, but also build a digital twin in the metaverse to deliver immersive education globally.
MidOcean Partners Acquires Pragmatic Institute, a world-renowned product management training company.
LISTEN
In the latest episode, we talk to Alec Levin of Learners about learning and applying UX research in the edtech space:
“One of the things for us is looking at the rise of TikTok as a frankly addictive but effective way at transmitting information and helping people discover things that they might be interested in. I think a staggering gap in the edtech space today is around content discovery or just idea discovery.”
READ
Uncommon Sense Teaching by Barbara Oakley, Beth Rogowsky & Terrence J. Sejnowski
“Excellent book about how learning science informs teaching.” - Alex Sarlin